Numerous start-up companies are attempting to carve out a niche in the green car market. Unfortunately, they face huge obstacles, such as the global recession, low gas prices and the credit crunch, that will limit their ability to succeed.

Numerous start-up companies located far from Detroit are attempting to carve out a niche in the green car market. Unfortunately, they face huge obstacles, such as the global recession, low gas prices and the credit crunch, that will limit their ability to succeed.

“A lot will depend on price and performance of the vehicles,” says Anjan Kumar, a senior research analyst at Frost & Sullivan Inc. (San Antonio). “It will depend on how far they succeed in branding themselves in the premium class. [Some companies are developing] performance-oriented sportscars that could match the likes of Porsche. Right now, there is little competition to such companies [from] traditional manufacturers. Clear branding strategy and delivering [on their promises] will help them succeed in the market.”

Other observers question whether many of the start-ups will ever get beyond the dream stage. Dave Cole, chairman of the Center for Automotive Research (Ann Arbor, MI), says one of the most popular startups encountered numerous problems once it actually started to assemble a prototype vehicle. “They quickly found out that building a car is a very complex process,” he explains. “The Silicon Valley venture had to bring in a lot of automotive guys to solve their problems.”

“All of these companies face a somewhat common obstacle in that they must have a mainstream product that sells in volumes high enough to reach a favorable economy of scale,” adds Daniel McGillis, global business development manager at ABB Robotics (Auburn Hills, MI). “If not, they will continue to be niche players in the overall market, making them highly susceptible to global market shifts. Since none of these companies seem to own patentable technologies, I don’t see them being wildly successful.”

Here’s a brief look at a few of the players in the electric car market and their ambitious, pie-in-the-sky production plans: